Fed Credibility

[Finster]

Re: Fed Credibility

http://hussmanfunds.com/wmc/wmc060814.htm


and



Does anyone see it differently?

Can't dismiss Hussman's "alternate thesis". IMO, it is in fact the most likely path from here. The Greenspan Fed monstrously expanded money and credit, to the point where it overflowed US borders and flooded the globe. Any new attempt at domestic monetary restraint would have to be very deep or very protracted to have much effect, because so much dollar liquidity remains outside the US.

[lobodelmar]

Re: Fed Credibility

Finster, mainly true, but one thing that you didn't mention in crediting the early 20th century with the American rise to power is the lucky break we got when we emerged victorious from WWII with our three main economic rivals (England, Germany and Japan) pretty much devastated.

The 20th century belonged to the US because of that huge shift in capital to a country that still had an infrastructure...and we've milked it great for the past 50 years...now, things ain't so easy anymore.